How RERA will benefit buyers

Under RERA, each state will have to setup regulatory bodies as appellate tribunals to solve the disputes between buyer and builder within 120 days.

Developer will have to put 70% of the money collected from a buyer in a separate account to meet the construction cost of the project.

RERA will make it mandatory for all commercial and residential real estate projects where the land is over 500 sq. mt. or eight apartments will have to register with the regulator before launching a project.

RERA also seeks to impose strict regulations on the promoter and ensure that construction is completed on time.

Carpet area has been clearly defined in the bill to include usable spaces like kitchen and toilets imparting clarity which was not the case earlier.

A developer’s liability to repair structural defects has been increased to 5 years from the earlier 2 years.

The buyer will pay only for the carpet area (area within walls). The builder can’t charge for the super built-up area, as is the practice at present.

Developers will be able to sell projects only after the necessary clearances. Under RERA, builders and agents will have to register themselves with the regulator and get all projects with more than eight apartments registered before launch.
To enable informed decisions by buyers, Real Estate Regulatory Authorities will ensure publication on their websites information relating to profile and track record of promoters, details of litigations, advertisement and prospectus issued about the project, details of apartments, plots and garages, registered agents and consultants, development plan, financial details of the promoters, status of approvals and projects etc.

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